First Helium Inc V.HELI

My Thoughts & Price Target – Near Term 3X potential

[boogawooga8558]

Monster news for $HELI.V today – HELI struct another strong #oil well, testing at 467bb/day (https://www.newswire.ca/en/releases/archive/March2022/23/c0136.html)! This is their 2^nd oil well. Previous well ‘1-39’ that is now in production as of Feb 1 is producing an average of 435 BOE/day (https://www.newswire.ca/en/releases/archive/February2022/01/c3381.html).

 
PRICE TARGET:
 
Lets use a lower/conservative even number of 400 BOE/D to calculate cash flows:
400*2wells = 800 BOE/D * 365 = 292,000 * Current Netback estimate of $85 = $24,820,000/annum or 0.368 / share on an non-diluted basis and or 0.248/ share on a fully diluted basis.
 
Industry average is ~6X price : Cash flow. Once revenue is booked and confirmed this stock should be trading at $1.48/share on a fully diluted basis (as warrants & options are ITM now)… or almost 3X upside. This is giving ZERO value to the 1.3% Helium well ’15-25’ which has an independent evaluation NPV of $15.2M or an additional $0.15/ fully diluted share. This also gives ZERO value for the blue sky across the 32,000 hectares of prospective oil & helium-bearing land!
 
This management team has struck MONSTER wells on 2 for 2 attempts. Lots of catalysts coming:

• HELI will be engaging independent reserve engineering consultants to evaluated the 4-29 & 1-30 wells for resource and reserve estimates. This will provide an NPV for those 2 wells.
• Low-cost well bore re-entries on existing land are being evaluated

• Additional well locations for both helium and oil are being considered with ETA for drilling expected end of Q2

[jrk8888]

Well summarized. I imagine some of the selling is related to the in the money warrants. Stil way undervalued.

[gossamer7]

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